|Bid||29.60 x 0|
|Ask||29.62 x 0|
|Day's Range||29.51 - 29.63|
|52 Week Range||21.55 - 30.64|
|Beta (3Y Monthly)||0.68|
|PE Ratio (TTM)||9.77|
|Earnings Date||Nov 12, 2019|
|Forward Dividend & Yield||0.90 (3.06%)|
|1y Target Est||24.18|
(Bloomberg) -- Once seen as a fossil-fuel dinosaur, Uniper SE has a strategy for how to thrive in Europe’s shift to green energy.While the plan still involves burning hydrocarbons, it’s natural gas, the cleaner cousin of coal, that could drive profits in the future. Chief Executive Officer Andreas Schierenbeck said Uniper’s network of pipelines, storage sites and its trading division puts it ahead of peers EON SE and RWE AG as Germany increasingly relies on intermittent wind and solar.“Gas is exactly the bridge technology that’s needed,” Schierenbeck said in an interview at Bloomberg’s Frankfurt office. “We’re much better positioned for that than the other players.”Established in 2016 as a spin off of EON’s gas and coal operations, Uniper has had to answer questions from investors on whether it has a future as Germany seeks the closure of a large chunk of its power plants. The nation’s plan to slash emission relies on pulling coal out of the power generation market by 2038. That will force Uniper to close seven plants burning the fuel.Schierenbeck said Germany’s decision to quit coal, as well as nuclear by 2022, could boost the economics of burning gas to make electricity. Those gas plants may have a bigger role in the energy system. Uniper also is building skills on converting coal plants into gas-fired stations, which will also it to use its existing assets for longer.One such project includes the conversion of the Scholven plant in Gelsenkirchen. Under that program, units that burn hard coal at the facility, with a combined generation capacity around 800 megawatts, will start using gas by 2022. Those gas-fired units could also eventually be powered by green hydrogen.“I think they’ll be the next big thing for us,” he said.Uniper has one plant, the 1,100-megawatt Datteln-4 facility in North Rhine-Westphalia, that has yet to connect to the grid after cracks were discovered. Negotiations are ongoing over whether it will start next year.“There is understanding from the government that it makes sense to turn on the most efficient plant,” Schierenbeck said, adding that he doesn’t expect the case to go to court.HydrogenUniper and several of its peers are racing to develop emissions-free ways of producing hydrogen. The technology is now seen as an important option to fill the energy gap left from exits from coal and nuclear.The fuel is also suitable as a replacement for natural gas and could be used in Uniper’s existing gas-fired plants.“We need to make gas green as natural gas will be the next coal discussion,” Schierenbeck said. “If you find a solution, you can easily scale it.”To contact the reporters on this story: William Wilkes in Frankfurt at firstname.lastname@example.org;Vanessa Dezem in Frankfurt at email@example.com;Will Kennedy in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Reed Landberg at email@example.com, Lars PaulssonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The German government will not force hard coal power plants to close over the next seven years, a draft law expected to be approved by the cabinet next week showed on Tuesday. A previous blueprint seen by Reuters stipulated that utilities would be forced to deactivate hard coal power plants by 2026 if not enough closures happen voluntarily. The government plans to use a mixture of subsidies and tenders to encourage operators to close coal plants beginning next year.
S&P Global Platts said on Friday it had added Uniper Energy DMCC, a unit of Germany-based energy trader Uniper, to its Asia Market On Close (MOC) assessment process for Asian fuel oil. Uniper Energy will also be included in Platts' price assessment process for Singapore and Fujairah physical bunker fuel, Platts said in a subscriber note. Singapore is the world's largest marine fuels market and serves as Asia's pricing hub for fuel oil as well as other petroleum products including gasoline and diesel.
(Bloomberg Opinion) -- From the Rocky Mountains to the Rhineland and Australia’s Great Dividing Range, the great tide of the coal industry is receding.The entire Powder River Basin, the region spanning the states of Montana and Wyoming that provides about half of America’s thermal coal, is “distressed,” Moody’s Investors Service wrote in a report last week. All companies producing coal there are now focusing on mining coking coal elsewhere in the U.S., the ratings company wrote. Output “will likely fall significantly in 2020,” it said.Energy Information Administration forecasts quoted by Moody’s suggest that production from the Powder River-dominated Western Region will drop to 339 million short tons in 2020 from 418 million short tons in 2018, a 19% reduction and a 42% decline from 592 million short tons in 2010. Most of that decline happened while coal could still produce electricity more cheaply than renewable alternatives, a situation that’s now reversed. A comparable drop over the coming decade would shutter almost every mine in the basin. In Australia, the world’s second-largest coal exporter after Indonesia, similar trends are afoot. The pipeline of new renewables projects, led by solar farms, now stands at 133 gigawatts, according to research group Rystad Energy. Coupled with a flood of energy-storage projects coming online by 2025, that means that coal-fired generation could be extinct by 2040, the group said Tuesday. Changes under way in Europe are pointing in the same direction. Germany, long considered one of the rich world’s last redoubts of coal-fired power, is seeing generation plummet as the rising price of carbon credits and falling cost of gas squeeze out profits for generators. Germany’s current-year and next-year dark spreads, which represent the theoretical profit for coal-fired power based on prevailing fuel, electricity and carbon prices, have been in negative territory for much of the year. Generators RWE AG and Uniper SE are still able to eke out margins by utilizing carbon credits bought in former years when prices were in the region of 5 euros ($5.57) compared to their current 25.93 euros. Eventually, that stockpile will run out. Unless gas gets more expensive or carbon gets cheaper, the German government’s target for ending coal-fired generation by 2038 is likely to come 15 years or so early.Remarkably, this trend is even sweeping up brown coal, or lignite, a cheap-and-dirty variety that’s been seen as more resilient than Germany’s costlier black coal. Lignite generation in the six months through June fell 28% from a year earlier at RWE, a drop of 9.9 terawatt-hours.Even regions that were once viewed as the last hopes for coal demand are looking dicier. The pipeline of thermal power projects beginning construction in Southeast Asia has fallen to zero this year everywhere except in Indonesia. Even there, the capacity starting up is just 1,500 megawatts, equivalent to just five or six power plants, according to a report published Wednesday by Global Energy Monitor, a research group in favor of fossil fuel phase-out.The world has gone through a remarkable energy transition over the past decade, but much of the shift still lies, iceberg-like, beneath the surface. Renewables are cheaper than coal almost everywhere, a prospect that was considered so improbable at the time of the 2006 Stern Review on climate change that it wasn’t treated as a serious possibility beyond a vague hope that research and development might one day flip the script. The great hope for coal now is not that it will be able to survive in the free market, but that government support will come in to bail out an industry that can’t survive on its own, in the process locking in pollution-related disease and climate emissions for future generations.It’s not impossible that this bet will work in a few regions — as exemplified by the speech given last week to China’s National Energy Commission by Li Keqiang, in which the premier sang the praises of domestic coal deposits and stepped back from previous promises to accelerate deployment of renewables.Any industry that harms its consumers, pollutes the planet and depends for its survival on political support is living on borrowed time, though. The declines to coal-fired power on multiple continents are the death throes of a technology that’s rapidly heading towards obsolescence. Humanity will still struggle to reduce our emissions fast enough to avoid devastating climate change — but don’t be surprised if this industry falls even faster than people have dared to hope.(Corrects the eighth paragraph and “End of the Road” chart in column first published Oct. 24 to show that the figure refers only to projects that are starting construction.)To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Uniper and Fortum have had a strained relationship since the Finnish state-owned company launched a takeover bid for the German group in 2017 which Uniper opposed. In October, state-controlled Finnish utility Fortum agreed to buy a stake of more than 20.5% in Uniper, which would bring its total holding to more than 70.5%.
Moody's Investors Service (Moody's) has today placed the Baa2 issuer and senior unsecured ratings of Fortum Oyj (Fortum) on review for downgrade. A full list of affected ratings is provided towards the end of this press release.
Uniper said on Thursday its suitor, Finnish utility Fortum, had yet to address a range of questions from the German energy firm's management to convince it to support a takeover deal. Uniper said in a statement that Fortum needed to provide answers about its commitments to employees, Uniper's strategy and financial stability, as well as the composition of Uniper's supervisory board.
(Bloomberg Opinion) -- Any takers for a couple of big stakes in an old-style, carbon-emitting power generator?Germany’s Uniper SE is not a business that fits with the times. Yet hedge funds Elliott Management Corp. and Knight Vinke have just succeeded in squeezing a high price from the one keen buyer of their combined 21% holding, the Finnish utility Fortum Oyj.Investors sitting on the other 30% not already owned by Fortum can only look on in dismay and ask how they missed out.Fortum made a takeover bid for Uniper in 2017 but had to settle for a stake just below 50% after it emerged that Moscow had an effective veto on it gaining control (the German company owns a water facility in Russia and Fortum is controlled by the Finnish state, hence Russia’s right to block the deal).All of a sudden, something has changed. Fortum sees a potential path to Russian approval, although it won’t say precisely what it is. The Finnish company has agreed therefore to pay 2.3 billion euros ($2.5 billion) for the position held by Elliott and Knight Vinke. That would give it a 71% stake, assuming Russia’s approval is forthcoming.For Elliott, it’s a classic short-term win from opportunistically buying into a bid target. For Knight Vinke, it’s the profitable culmination of a longstanding activist campaign that began with nudging the German power giant E.ON SE to carve out Uniper in a demerger three years ago.As for Fortum, it’s a victory of sorts in a war of attrition with Uniper’s management. The Finns look set to gain de facto control. Key shareholder votes in German companies require 75% approval and Fortum would almost certainly clear that hurdle, gaining the power to appoint directors to Uniper’s supervisory board, who in turn oversee the management board. True, Fortum can’t fully integrate the German business into its own company. But it will get to direct Uniper’s strategy and receive dividend payments to cover the cost of its stake.There’s nothing here for Uniper minority investors, though. They were hoping to get a fresh takeover offer from Fortum, made available to all shareholders. Either that or a so-called “domination agreement” whereby Fortum got full access to Uniper’s cash flow in return for paying minority shareholders a chunky dividend. Fortum says it has no plans to make a fresh bid and won’t seek a domination agreement for at least two years. Why would it?It would have been better if Uniper had extracted some sort of agreed deal with Fortum. The German target appears to have relied on the Russian water asset being a poison pill. Fortum seems to have found a way around that. But with Fortum having a blocking stake and the hedge funds agitating for an exit, negotiating a grand bargain between all the stakeholders would have been the best way forward for Uniper.Minority investors are always in a tough spot when the register includes other big beasts, especially when one is a strategic bidder and another is Elliott. The episode is a reminder that sometimes their interests are best served by management not fighting too hard.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Labor representatives at Uniper , fearing a ratings downgrade in the event of a full takeover of the German energy group, have called on major shareholder Fortum to lay out plans for future cooperation between the two companies. It is the latest attempt to break a deadlock in Uniper and Fortum's long-running talks over their future relationship strained by the Finnish group's efforts to acquire a majority in Uniper against its will. Russian regulators also bar Fortum from raising its stake from the current 49.99% in Uniper because of a water license the German group operates there, which, according to local law, cannot be majority owned by a state-owned entity.
FRANKFURT/DUESSELDORF, Germany, Aug 8 (Reuters) - German energy firm Uniper is holding constructive but complex talks with top shareholder Fortum over their future cooperation, its new chief executive said, signalling slow progress in attempts to end a long-standing deadlock. Finland's Fortum owns 49.99% in Uniper and has been trying to acquire a majority against the German firm's will. Russian regulators have blocked this, arguing a water license held by Uniper's Russian unit cannot be majority-owned by Fortum.
Fortum, the state-controlled Finnish utility, wants to restart talks with the management of Germany's Uniper, in which it owns 49.9 percent after a hostile takeover, it said on Monday. "We are in contact with the Supervisory Board of Uniper with a view to resuming such discussions as soon as possible," Fortum said in a statement, adding that it is interested in the company as a whole. The utility responded to a letter from the head of Uniper's works council, seen by Reuters, in which labor representatives had demanded clarity about Fortum's intentions with Uniper amid concerns that Fortum may want to break up the company.
FRANKFURT/DUESSELDORF, Germany, June 12 (Reuters) - Some small shareholders in Uniper see room for a tie-up with top shareholder Fortum, joining activist calls to end a standoff after the Finnish group's acrimonious failed takeover attempt. Fortum has been barred by Russian regulators from expanding its 49.99% stake in Uniper which has also opposed a takeover, fearing that the Finnish state-owned firm could break it up and put its investment grade credit rating at risk. "Fortum's interest in Uniper does make sense for some parts, but not for the whole business," Winfried Mathes, analyst at Deka Investment, a top-20 shareholder of Uniper, said, adding that Russia and Sweden represented the best strategic fit.
Norway's $1 trillion sovereign wealth fund may have to sell a $1 billion stake in commodities firm Glencore and other investments to meet tighter ethical investing rules adopted by its parliament. Norway's parliament agreed on Wednesday to the center-right government's plan that the world's largest fund would no longer invest in companies that mine more than 20 million tonnes of coal annually or generate more than 10 gigawatts (GW) of power from coal. Environmental campaigners Greenpeace and Urgewald said the new rules mean the fund would have to divest its 2.03% stake in Glencore, worth $1 billion at the end of 2018 according to fund data.
Fortum's chief executive officer has met with Russian President Vladimir Putin to discuss a key ownership restriction that is preventing the Finnish firm from taking control of German utility Uniper , it said on Tuesday. Government-controlled Fortum has a 49.99% stake in Uniper, but is prevented from raising its holding as Russian authorities have said a licence owned by Uniper's Unipro must not be majority-owned by a foreign state-owned entity. Changing the regulation could pave the way for Fortum to take full control of Uniper and break a long-standing deadlock that has also frustrated activist funds Elliott and Knight Vinke, which together hold nearly 23% of the German firm.
Uniper's chairman on Sunday said talks with major shareholder Fortum to resolve a dispute between the two companies were on hold after two of the German utility's board members resigned. Fortum and Uniper have been at loggerheads since the Finnish state-owned utility tried to take over the German group in 2017, a deal that Uniper's management opposed due to concerns it might get broken up. Fortum, which has a 49.99% stake in Uniper, has claimed that Uniper's board actively tried to block its planned takeover, which Uniper denies.
Uniper's chief operating officer and chief commercial officer will step down by the end of November, the German utility said on Sunday only days after a long-standing conflict with top shareholder Fortum flared up again. Uniper said COO Eckhardt Ruemmler and CCO Keith Martin had asked the group's chairman to terminate their contracts at the end of Nov. 30, 2019. Fortum and Uniper have been at loggerheads since the Finnish state-owned utility tried to take over the German group in 2017, a deal that Uniper's management fiercely opposed due to concerns it might get broken up.
DUESSELDORF, Germany/FRANKFURT, May 22 (Reuters) - Uniper signalled on Wednesday little prospect of a rapid breakthrough in talks with top investor Fortum that might lead to a full takeover of the German utility. Fortum and Uniper have been at loggerheads since the Finnish state-owned utility tried to take over the German group in 2017, a deal that Uniper's management fiercely opposed due to concerns it might get broken up. Russian regulators have barred Fortum from owning more than the current 49.99% in Uniper because of a water-testing licence owned by the German firm's Russian unit Unipro.